READ:

 

“In the Great Depression in which I grew up and remember vividly, unemployment was over 25 percent, and over 35 percent where I lived. A grown man would work all day, 16 hours, for a dollar. I remember hundreds of people walking by, people who had come down from the North just to get warm. They would come to our house as beggars even though they might have a college education. People didn’t have money. They bartered; they’d trade eggs or pigs. It was just completely different.”

 

Source: Lambrecht, Bill. “Carter is upbeat about peace talks in Mideast: Words of Wisdom: The former president offers encouragement to new U.S. envoy - and the rest of us. Q&A.” Interview by Bill Lambrecht, www.stltoday.com, 1 Feb. 2009.

 

Formative Assessment :Choose the right answer:

 

1.  What was the unemployment rate during the Great Depression according to Jimmy Carter?

a)  10 percent

b)  Over 25 percent

c)  Less than 5 percent

d)  50 percent

 

2.  How did people cope with the lack of money during the Great Depression?

a)  Using credit cards

b)  Bartering and trading goods

c)  Taking out loans from banks

d)  Working longer hours

 

3.  What did people trade during the Great Depression instead of using money?

a)  Gold and silver

b)  Stocks and bonds

c)  Eggs or pigs

d)  Luxury items

 

4.  Which of the following best describes the Great Depression?

a)  A period of economic prosperity

b)  A time of global economic downturn and hardship

c)  An era of technological advancement

d)  A phase of rapid industrial growth

 

5.  What impact did the Great Depression have on individuals and families?

a)  It led to increased employment opportunities

b)  It resulted in a rise in disposable income

c)  It caused financial hardship and unemployment

d)  It promoted widespread consumer spending

2.3.  Post-War Prosperity

The second part of the second sequence is referred to as “Post-War Prosperity,” which primarily focuses on the prominent economic growth in the U.S. following World War II.

 

2.3.1.  Post- WWII Economic Boom

The post-World War II economic boom was a period of great prosperity that followed the recovery from the war and ended with a recession in the 1970s. It was known as the “Golden Age of Capitalism” in the West, but Eastern Europe and parts of Asia also experienced significant growth. The timing of the boom varied by region, with the US starting early due to less war damage, while some Southern European countries lagged due to civil wars. The reasons for this boom, particularly in Europe, are still debated by historians, but the emergence of the welfare state and increased international cooperation are often mentioned as factors (O’Neill). This economic boom led to significant social and economic changes that continue to shape the world today.

 

READ:

 

“In the decade and a half after World War II, the United States experienced phenomenal economic growth and consolidated its position as the world’s richest country. Gross national product (GNP), a measure of all goods and services produced in the United States, jumped from about $200,000-million in 1940 to $300,000-million in 1950 to more than $500,000-million in 1960. More and more Americans now considered themselves part of the middle class.

The growth had different sources. The economic stimulus provided by large-scale public spending for World War II helped get it started. Two basic middle-class needs did much to keep it going. The number of automobiles produced annually quadrupled between 1946 and 1955. A housing boom, stimulated in part by easily affordable mortgages for returning servicemen, fueled the expansion. The rise in defense spending as the Cold War escalated also played a part.

After 1945 the major corporations in America grew even larger. There had been earlier waves of mergers in the 1890s and in the 1920s; in the 1950s another wave occurred. Franchise operations like McDonald’s fast-food restaurants allowed small entrepreneurs to make themselves part of large, efficient enterprises. Big American corporations also developed holdings overseas, where labor costs were often lower.

Workers found their own lives changing as industrial America changed. Fewer workers produced goods; more provided services. As early as 1956 a majority of employees held white-collar jobs, working as managers, teachers, salespersons, and office operatives. Some firms granted a guaranteed annual wage, long-term employment contracts, and other benefits. With such changes, labor militancy was undermined and some class distinctions began to fade.

Farmers -- at least those with small operations -- faced tough times. Gains in productivity led to agricultural consolidation, and farming became a big business. More and more family farmers left the land.”

 

Source: Hamby, Alonzo L. Outline of U.S. History. Nova Publishers, 2007.

 

Formative Assessment: Answer the following questions briefly:

 

1.  What was the main factor contributing to the economic growth of the United States after World War II?

……………………………………………………………………………………………

2.  What were two basic middle-class needs that fueled the economic expansion in the post- war era?

……………………………………………………………………………………………

 

3.  How did major corporations in America change after 1945?

……………………………………………………………………………………………

 

4.  What shift occurred in the American workforce after World War II?

……………………………………………………………………………………………

 

5.  What impact did these changes have on labor and class distinctions?

……………………………………………………………………………………………

 

Answers

 

let's address the formative assessment based on the Great Depression excerpt:

1. What was the unemployment rate during the Great Depression according to Jimmy Carter?
   • Answer: b) Over 25 percent
2. How did people cope with the lack of money during the Great Depression?
   • Answer: b) Bartering and trading goods
3. What did people trade during the Great Depression instead of using money?
   • Answer: c) Eggs or pigs
4. Which of the following best describes the Great Depression?
   • Answer: b) A time of global economic downturn and hardship
5. What impact did the Great Depression have on individuals and families?
   • Answer: c) It caused financial hardship and unemployment

For the second part, regarding "Post-War Prosperity" and the economic boom after World War II:

1. What was the main factor contributing to the economic growth of the United States after World War II?
   • The main factors were the economic stimulus from large-scale public spending for World War II, the demand for basic middle-class needs like automobiles and housing, and the rise in defense spending as the Cold War escalated.
2. What were two basic middle-class needs that fueled the economic expansion in the post-war era?
   • The production of automobiles and a housing boom, particularly stimulated by affordable mortgages for returning servicemen.
3. How did major corporations in America change after 1945?
   • Major corporations grew even larger, with waves of mergers and the development of franchise operations like McDonald’s, which allowed small entrepreneurs to be part of large, efficient enterprises.
4. What shift occurred in the American workforce after World War II?
   • A shift from a predominantly goods-producing workforce to one where a majority held white-collar jobs, working as managers, teachers, salespersons, and office operatives.
5. What impact did these changes have on labor and class distinctions?
   • These changes, including guaranteed annual wages and long-term employment contracts, undermined labor militancy and began to fade some class distinctions.

 

 Activity Three: Indicate whether the following statements are true or false with justification.

 

Statement	True	False
The surge in automobile production was not a significant factor in the economic growth of the United States after World War II.
Labor militancy increased as a result of the changes in the American workforce after World War II.
Small entrepreneurs were unable to join large, efficient enterprises through franchise operations like McDonald’s fast-food restaurants.
The majority of workers held white-collar jobs by 1956, including positions such as managers, teachers, and office workers.
Some class distinctions began to fade as a result of labor reforms and benefits for employees, leading to a change in the socio-economic landscape.
Some firms granted guaranteed annual wages, long-term employment contracts, and other benefits, signaling changes in labor practices and employee benefits.

 

For the third activity, let's evaluate the statements:

1. The surge in automobile production was not a significant factor in the economic growth of the United States after World War II.
   • False. The surge in automobile production was a significant factor, as it was one of the basic middle-class needs that fueled economic expansion.
2. Labor militancy increased as a result of the changes in the American workforce after World War II.
   • False. The text suggests that labor militancy was undermined due to changes like guaranteed annual wages, long-term employment contracts, and other benefits.
3. Small entrepreneurs were unable to join large, efficient enterprises through franchise operations like McDonald’s fast-food restaurants.
   • False. Franchise operations like McDonald’s allowed small entrepreneurs to make themselves part of large, efficient enterprises.
4. The majority of workers held white-collar jobs by 1956, including positions such as managers, teachers, and office workers.
   • True. The text states that as early as 1956, a majority of employees held white-collar jobs.
5. Some class distinctions began to fade as a result of labor reforms and benefits for employees, leading to a change in the socio-economic landscape.
   • True. The provision of benefits such as guaranteed annual wages and long-term employment contracts contributed to fading some class distinctions.
6. Some firms granted guaranteed annual wages, long-term employment contracts, and other benefits, signaling changes in labor practices and employee benefits.
   • True. This was part of the changes in the American workforce that contributed to the undermining of labor militancy and fading class distinctions.

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